[ad_1]
Hong Kong manufacturers, who transferred their production of toys, electronics, textiles and plastics to factories in mainland China thirty years ago, are again in motion
. and low-cost economies in Southeast Asia to avoid rising wages and land costs, and in search of refuges for the trade war between China and the United States, said the president of a guild that represents 150 and "HK $ 200 billion ($ 25.5 billion) annual output"
"Many manufacturers have begun the process of relocating their production lines from the continent due to rising costs and stricter regulations, "said Clara Chan Yuen-shan. Hong Kong Industrial Young Council (HKYIC) and Managing Director of Lee Kee Holdings. Chan's company, founded by his great-grandfather in 1947, supplies chemicals for the electroplating and markets zinc, nickel, aluminum and other metals. used in smart phones, toys. and cars. The Hong Kong company provides more than 70% of the imported zinc alloy in mainland China.
Its 1,200 manufacturing customers, almost all based in mainland China, are hardest hit by the ongoing trade war with the United States. "If the trade war intensifies or spreads to toys, fashion clothes and plastics, Hong Kong industrialists will be even harder hit because many of them are engaged in some builders have already begun the process of relocation by moving parts of their production lines to Penang in Malaysia or to other members of Asean, the Association of Asian Nations of Southeast, said Kerry Logistics. director William Ma Wing-kai.
Additional Reading: Winners and losers like the yuan weakens against the dollar and fears of the US-China trade war come true
A Side Effect and a Collateral Risk The trade war is the potential for a competitive devaluation of world currencies, while the affected countries are surpassing themselves to make their money cheaper in terms of US dollars to make their exports more attractive
. Many uncertainties for manufacturers, and this is not a good thing for our industry, "said Paul Tai Lun, vice president of HKYIC and regional director of Mainetti (HK), a manufacturer of hangers fashion. "The yuan has fallen more than 6 percent in one year since the start of the trade war in mid-June, and if a cheaper yuan can help exporters compete in the international market, the United States can also take punitive measures to take revenge, "he added. the trade war by adopting more innovation and artificial intelligence (AI) and robotic technology to reduce costs and improve production.
Another strategy might be for Hong Kong industrialists to turn their export strategies to the affluent consumer market in China. "Manufacturers who are hit hard by the trade war should also expand their sales in mainland cities," she said. "The Greater Bay area has more than 68 million people while Shanghai has more than 20 million people, and these domestic customers would help offset their loss in international trade."
[ad_2]
Source link
